BOVESPA:BRFS3

Stock Analysis Report

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Executive Summary

BRF S.A. focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products. More Details


Snowflake Analysis

Questionable track record and overvalued.


Similar Companies

Share Price & News

How has BRF's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRFS3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BRFS3's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.3%

BRFS3

-0.5%

BR Food

-0.2%

BR Market


1 Year Return

-43.4%

BRFS3

-16.5%

BR Food

0.9%

BR Market

Return vs Industry: BRFS3 underperformed the BR Food industry which returned -15.7% over the past year.

Return vs Market: BRFS3 underperformed the BR Market which returned 0.8% over the past year.


Shareholder returns

BRFS3IndustryMarket
7 Day-5.3%-0.5%-0.2%
30 Day-7.6%1.5%4.0%
90 Day9.7%5.9%19.4%
1 Year-43.4%-43.4%-15.0%-16.5%3.6%0.9%
3 Year-44.7%-44.7%38.3%34.7%59.1%42.1%
5 Year-56.0%-56.6%45.5%38.5%223.9%168.2%

Long-Term Price Volatility Vs. Market

How volatile is BRF's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BRF undervalued compared to its fair value and its price relative to the market?

14.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRFS3 (R$20.39) is trading above our estimate of fair value (R$15.77)

Significantly Below Fair Value: BRFS3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRFS3 is poor value based on its PE Ratio (14.2x) compared to the BR Food industry average (11.8x).

PE vs Market: BRFS3 is good value based on its PE Ratio (14.2x) compared to the BR market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: BRFS3 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BRFS3 is overvalued based on its PB Ratio (2.3x) compared to the BR Food industry average (2x).


Next Steps

Future Growth

How is BRF forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRFS3's forecast earnings growth (12.4% per year) is above the savings rate (9.9%).

Earnings vs Market: BRFS3's earnings (12.4% per year) are forecast to grow slower than the BR market (26.8% per year).

High Growth Earnings: BRFS3's earnings are forecast to grow, but not significantly.

Revenue vs Market: BRFS3's revenue (5.3% per year) is forecast to grow slower than the BR market (9.9% per year).

High Growth Revenue: BRFS3's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRFS3's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has BRF performed over the past 5 years?

-21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRFS3 has a large one-off gain of R$1.1B impacting its September 30 2020 financial results.

Growing Profit Margin: BRFS3's current net profit margins (3.1%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: BRFS3's earnings have declined by 21.7% per year over the past 5 years.

Accelerating Growth: BRFS3's earnings growth over the past year (39.1%) exceeds its 5-year average (-21.7% per year).

Earnings vs Industry: BRFS3 earnings growth over the past year (39.1%) underperformed the Food industry 80%.


Return on Equity

High ROE: BRFS3's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is BRF's financial position?


Financial Position Analysis

Short Term Liabilities: BRFS3's short term assets (R$23.9B) exceed its short term liabilities (R$18.1B).

Long Term Liabilities: BRFS3's short term assets (R$23.9B) do not cover its long term liabilities (R$25.7B).


Debt to Equity History and Analysis

Debt Level: BRFS3's debt to equity ratio (380.7%) is considered high.

Reducing Debt: BRFS3's debt to equity ratio has increased from 110.5% to 380.7% over the past 5 years.

Debt Coverage: BRFS3's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: BRFS3's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is BRF current dividend yield, its reliability and sustainability?

2.23%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BRFS3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BRFS3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRFS3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRFS3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BRFS3 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRFS3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Lorival Luz (49 yo)

1.58yrs

Tenure

Mr. Lorival Nogueira Luz, Jr., has been Member of Executive Board of BRF S.A. since September 2017 and had been its Global Chief Operating Officer since 2018 until June 17, 2019 and serves as its Global Ch...


Leadership Team

NamePositionTenureCompensationOwnership
Lorival Luz
Global CEO & Member of Executive Board1.58yrsno data0.0099%
R$ 1.7m
Carlos Alberto de Moura
Chief Financial & Investor Relations Officer and Member of Executive Board1.33yrsno datano data
Patrício Rohner
Vice President of International Operations and Member of Executive Boardno datano datano data
Alessandro Bonorino
Vice President of People Services & Technologyno datano data0.0065%
R$ 1.1m
Sidney Manzaro
VP of Commercial Brazil Market & Member of Executive Boardno datano data0.0083%
R$ 1.4m
Vinicius Barbosa
VP of Operations & Procurement and Member of Executive Boardno datano datano data
Leonardo Dallorto
VP of Sales & Operations Planning & Supply Chain and Member of Executive Boardno datano datano data
Neil Dos Guimarães Peixoto
VP of Qualityno datano data0.0011%
R$ 187.8k
Bruno Ferla
Vice President of Institutional Affairs2.42yrsno datano data
Marcos Badollato
Controllerno datano datano data
Cristiana Wiener
Secretaryno datano datano data
Carlos E. Prestes
Global EHS Directorno datano datano data

1.6yrs

Average Tenure

50yo

Average Age

Experienced Management: BRFS3's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luiz Fernando Furlan
Independent Director11.5yrsno datano data
Pedro Parente
Independent Chairman of the Board2.75yrsno data0.038%
R$ 6.3m
Dan Ioschpe
Independent Director2.75yrsno datano data
Flavia de Almeida
Independent Director3.75yrsno datano data
Attilio Guaspari
President of Fiscal Council15.75yrsno datano data
Augusto da Cruz Filho
Independent Vice Chairman2.75yrsno datano data
José Luiz De Almeida Filho
Independent Director2.75yrsno data0.76%
R$ 128.1m
José Roberto Rodrigues
Independent Director2.75yrsno data0%
R$ 0
Maria Paula Aranha
Member of the Fiscal Council1.75yrsno datano data
Flavia Bittencourt
Independent Director1yrno datano data
André Vicentini
Member of Fiscal Council2.75yrsno data0.000070%
R$ 11.7k
Ivandré da Silva
Director1yrno datano data

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: BRFS3's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BRF S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BRF S.A.
  • Ticker: BRFS3
  • Exchange: BOVESPA
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R$16.768b
  • Shares outstanding: 807.71m
  • Website: https://www.brf-global.com

Number of Employees


Location

  • BRF S.A.
  • Rua Jorge Tzachel, nº 475
  • Bairro Fazenda
  • Itajaí
  • Santa Catarina
  • 88301-600
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRFS3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLJul 1997
BRFSNYSE (New York Stock Exchange)SPON ADR (EACH REP 1 COM SHS BRL0.00)USUSDOct 2000
BRFS NBMV (Bolsa Mexicana de Valores)SPON ADR (EACH REP 1 COM SHS BRL0.00)MXMXNOct 2000
P5YDB (Deutsche Boerse AG)SPON ADR (EACH REP 1 COM SHS BRL0.00)DEEUROct 2000

Biography

BRF S.A. focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products. The company’s product...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 21:58
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.